Regulatory Capital - All Articles

  • High hopes for Dutch sub debt as AT1 obstacle removed

    Banks in the Netherlands are expected to finally prepare to print additional tier one capital in 2014, after the country removed the final barrier to issuance by ruling that AT1 instruments will be tax-deductible from January 1. The country’s banks are expected to be joined by Italian names in debut AT1 issuance — but Germany is still yet to resolve the tax issue.

    • 20 Dec 2013
  • Europe approves SNS Reaal spin-off before end of year

    SNS Reaal, the financial institution that put bail-in on the map in February when the Dutch government seized its subordinated debt as part of its rescue plan, is to spin off its property finance business to the Dutch state before the end of the year, after the European Commission made its final decision on the lender's state aid package this week.

    • 19 Dec 2013
  • Positive reaction to taper boosts bullish FIG

    The FIG market was given an extra lift on Thursday — if it needed one — by the US Federal Reserve’s decision to taper its $85bn quantitative easing programme by $10bn on Wednesday, with bankers saying the market’s positive reaction to the announcement had banished fears that the bull run of the last couple of months could be derailed before the end of the year.

    • 19 Dec 2013
  • Bank stress tests ‘will work backwards’ say analysts

    The results of the European Central Bank and European Banking Authority’s Asset Quality Review (AQR) and subsequent stress tests will depend on the amount of capital available to remedy capital shortfalls at European banks, Rabobank analysts have said.

    • 18 Dec 2013
  • FIG falls quiet but no rest for regulators

    The primary FIG markets are finally winding down in the run up to the Christmas holidays, with no new deals being launched this week. A mystery capital issuer postponed its deal until the new year, while UBS and Yorkshire Building Society closed liability management exercises — but the only real activity is among regulators.

    • 18 Dec 2013
  • Strong take-up for UBS multi-currency buyback

    UBS did not quite hit the spending cap on its senior and subordinated tender offer this week, but nevertheless achieved a strong participation rate, buying back just under €1.6bn of debt across 10 securities.

    • 17 Dec 2013
  • Mystery capital issuer postpones deal

    EuroWeek Bank Finance understands a European bank was considering printing a capital deal in euros last week, but has decided to wait until the New Year.

    • 17 Dec 2013
  • YBS buys back £75m of tier two convertibles

    Yorkshire Building Society has enjoyed a big response from investors to its offer to buy back its £100m 13.5% convertible tier two notes, with almost three quarters of the bonds tendered and accepted for purchase.

    • 16 Dec 2013
  • SocGen finds $17bn on global tour for second dollar AT1

    Société Générale built the latest in a succession of jumbo bank capital books this week after offering its second dollar-denominated additional tier one bond to US investors. It priced at a level the issuer saw as flat to fair value.

    • 13 Dec 2013
  • Bank of India dollar tier one could yield above 8%

    Bank of India has mandated banks to help it come to the market with the country's first Basel III-compliant US dollar denominated bond. But it might have to pay more than 8%, bankers fear, due to macro concerns about India, as well as downgrade and duration risks for the tier one deal.

    • 13 Dec 2013
  • RBI hits swap target despite Austrian widening

    Raiffeisen Bank International (RBI) is set to exchange €231.7m of old capital instruments into a new June 2024 callable note that will be more efficient under new capital regulations, after achieving a participation rate of close to 50% on its liability management exercise.

    • 13 Dec 2013
  • RBI hits target in €230m sub swap

    Raiffeisen Bank International (RBI) is set to exchange €231.7m of old capital instruments into a new June 2024 callable note that will be more efficient under new capital regulations, after achieving a participation rate of close to 50% on its liability management exercise.

    • 12 Dec 2013
  • SG flies on global tour for dollar AT1

    Société Générale had the makings of another huge bank capital book and was set to price its second dollar-denominated low trigger additional tier one deal in US trading hours on Wednesday, leaving bankers in Europe to debate the pricing of the deal.

    • 11 Dec 2013
  • Banks mop up last liquidity of 2013

    FIG issuers are making the most of the benign conditions this side of Christmas and have found ample demand in bank capital, senior unsecured and covered bonds this week. Bankers believe investors are still willing to play in numbers because they see more performance potential for credit in early 2014.

    • 11 Dec 2013
  • SocGen heads back to US for AT1 extension

    Société Générale will hold a global investor call on Tuesday for a second dollar sale of low-trigger additional tier one notes, with the French bank expected to extend its curve after a strong investor response for Credit Suisse’s perpetual non-call 10 year deal last week.

    • 09 Dec 2013
  • Barclays smashes open euros ahead of $50bn AT1 rush

    A heavily oversubscribed landmark deal from a national champion this week underlined the scale and speed of euro investors’ acceptance of additional tier one capital, writes Will Caiger-Smith.

    • 06 Dec 2013
  • AT1 at last: China's first glimpse of prefs

    While China ECM bankers were lapping up this week’s overhaul of the country’s rules governing IPOs, it was DCM bankers that were salivating over another element of the announced changes — a pilot programme allowing Chinese listed and unlisted companies to issue preference shares for the first time.

    • 06 Dec 2013
  • Bank of Ireland completes two-pronged €1.9bn state exit

    Bank of Ireland and the Irish government raised a total of €1.9bn on Wednesday, as the state sold its preference shares in the bank before a key deadline. The bank issued €580m of fresh equity to buy back some of the prefs, with another €1.3bn restructured and sold to bond investors through a special purpose vehicle.

    • 06 Dec 2013
  • Long-end fans gobble up £700m of Pru tier two

    There was audible relief from supply-starved sterling buyers this week as they rushed to get their hands on 30 year paper from Prudential plc, delivering the UK insurance group a 2.5 times subscription at a sharp price and driving the bonds tighter in secondary.

    • 06 Dec 2013
  • Credit Suisse captures capital imagination with $18bn book

    Credit Suisse pulled in over $18bn of orders for its perpetual non-call 10 year tier one transaction, driving the bonds sharply higher in the secondary market and fuelling confidence that demand for financials’ higher yielding securities is growing at a rapid pace.

    • 06 Dec 2013
  • Danske Bank mulls more tier two after Swissie

    Danske Bank is open to the idea of further capital issues in the near future following its sale of Swiss franc tier two bonds on Monday.

    • 06 Dec 2013
  • Credit Suisse captures capital imagination with $18bn book

    Credit Suisse pulled over $18bn of orders for its perpetual non-call 10 year tier one transaction, driving the bonds sharply higher in the secondary market and fuelling confidence that demand for financials’ higher yielding securities is growing at a rapid pace.

    • 05 Dec 2013
  • Long-end fans drive Pru tighter

    A predictably large bid from insurance and pension fund buyers helped Prudential plc’s 50 year non-call 30 deal to a 2.5 times subscription on Wednesday and drove the bonds tighter in secondary.

    • 05 Dec 2013
  • FIG market fears the payrolls effect on year-end capital rush

    FIG bankers are concerned that an anticipated positive non-farm payrolls number from the US on Friday could shut down a capital market that has shown considerable strength this week.

    • 05 Dec 2013
  • Credit Suisse tightens pricing on tier one

    Credit Suisse opened books on its US dollar low trigger tier one perpetual deal on Wednesday, following meetings with investors in London and New York earlier in the week. Although the bank did not reveal the book size, it had managed to tighten guidance by 25bp before passing the deal over to New York.

    • 04 Dec 2013
  • Prudential serves up sterling feast with long tier two

    FIG bankers expected to see investors running to get their hands on a 50 non-call 30 year tier two deal from Prudential on Wednesday, driven by the UK group’s high quality name and a lack of sterling supply this year.

    • 04 Dec 2013
  • Capital market heats up in year-end rush

    The bank capital market is ablaze this week, with Barclays’ additional tier one deal on Tuesday being followed by a low trigger tier one trade from Credit Suisse and a rights issue and preference share sale for Bank of Ireland on Wednesday. Covered bonds and ABS have continued apace, but like senior unsecured, those markets are slowing down as Christmas approaches.

    • 04 Dec 2013
  • Barclays flies in euro AT1 test

    Barclays proved that additional tier one paper from top tier banks could work in euros as well as dollars on Tuesday, gathering €7bn of orders for its perpetual non-call seven year equity conversion deal, which will help it reach the 3% leverage ratio target set by the UK’s Prudential Regulation Authority earlier this year.

    • 03 Dec 2013
  • Danske open to further tier two after Swiss deal

    Danske Bank is open to options for further capital issues in the near future following its sale of Swiss franc tier two bonds on Monday.

    • 03 Dec 2013
  • Barclays tests euro demand for new AT1

    Barclays is speaking to investors on Monday to take indications of interest for a potential euro denominated additional tier one capital deal, which will help it reach the 3% leverage ratio target set by the UK’s Prudential Regulation Authority by the deadline of June 2014. The deal comes amid a December rush in bank capital — Credit Suisse is also meeting investors for a low trigger tier one capital deal.

    • 02 Dec 2013
  • UBS prepares buyback of senior and tier two bonds

    UBS will buy back €1.75bn of debt across 11 bonds as part of the bank’s balance sheet reduction plans.

    • 02 Dec 2013
  • YBS to buy back convertible tier two notes

    Yorkshire Building Society is looking to buy back any and all of its £100m 13.5% convertible tier two notes at a single digit premium to market value.

    • 02 Dec 2013
  • Danske moves into Swissies to continue tier two issuance

    Danske Bank is expected to price Swiss franc denominated tier two debt on Monday afternoon, following the sale of a tier two euro bond in September and a Nordic currency trade last week.

    • 02 Dec 2013
  • Co-op Bank overcomes 'hard bit' of restructuring plan

    Subordinated retail bondholders of the UK’s Co-operative Bank have voted in favour of the bank’s debt restructuring scheme, helping it overcome what one source close to the deal called “the hard bit” of the bank’s £1.5bn rescue plan.

    • 02 Dec 2013